New Zealand Increased Investment in First Sponsor

For immediate release 27 September 2013

MILLENNIUM & COPTHORNE HOTELS PLC

(THE "COMPANY")

The following announcement was released earlier today by the Company's subsidiary, Millennium & Copthorne Hotels New Zealand Limited, which is listed on the New Zealand Stock Exchange. The Company has a 70% interest in Millennium & Copthorne New Zealand Limited.

ALAN SCOTT Tel: +44 (0)20 7872 2444

Company Secretary

Millennium & Copthorne Hotels plc

MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED

INCREASES ITS INVESTMENT IN FIRST SPONSOR

Millennium & Copthorne Hotels New Zealand Limited (NZX: MCK) announced today that it is to increase its investment in its associate company First Sponsor Capital Limited (FSCL) by USD 33.42 million, being its share of a capital call made by FSCL.

The additional investment will take the form of new preference shares in FSCL. MCK will be providing its pro rata share of the required capital in order to maintain its holding of preference shares in FSCL. After the issue of the new preference shares (which is expected to occur today), the MCK Group will remain at approximately 34% of FSCL.

FSCL requires additional funding for further expansion, in particular the development of its properties in Chengdu, Sichuan Province, China.

MCK applied for, and has been granted, a waiver from the requirement under Rule 9.2.1 of the NZSX Listing Rules to obtain the prior approval of MCK shareholders in relation to the additional investment. NZX Regulation will announce that waiver decision today. The waiver was required because:

--the MCK group (including a majority-owned Australian subsidiary) will be providing funding totalling approximately 18% of MCK's current market capitalisation. The acquisition will therefore be a "Material Transaction" under the NZSX Listing Rules; and

--MCK and FSCL are "Related Parties" under the NZSX Listing Rules as MCK, FSCL and a number of MCK's subsidiaries have common directors.

ENDS

Issued by Millennium & Copthorne Hotels New Zealand Limited

Enquiries to:

B K Chiu

Managing Director

Millennium & Copthorne Hotels New Zealand Limited

(09) 353 5058